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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of certain loss and expense experience in |
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insurance rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 560, Insurance Code, is amended by |
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adding Section 560.003 to read as follows: |
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Sec. 560.003. PROHIBITION ON USE OF CERTAIN LOSS AND |
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EXPENSE EXPERIENCE. An insurer may not: |
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(1) consider loss and expense experience from any |
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business other than the business of insurance in setting a premium |
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rate used by the insurer; or |
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(2) include loss and expense experience described by |
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Subdivision (1) in a rate filing made under this code. |
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SECTION 2. Section 560.003, Insurance Code, as added by |
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this Act, applies only to a premium rate used, or a rate filing |
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made, on or after January 1, 2018. A premium rate used, or a rate |
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filing made, before January 1, 2018, is governed by the law as it |
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existed immediately before the effective date of this Act, and that |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |